Thursday, January 29, 2009

BHEL targets 30% sales growth in FY09

BHEL has declared its third quarter results. The company's Q3 standalone net sales were up 21.3% at Rs 6,022.25 crore versus Rs 4,964.14 crore, YoY. Its standalone net profit was up 21.3% at Rs 790.56 crore versus Rs 771.90 crore, YoY. Its OPM was down 315 bps at 16.95% versus 20.1%.

K Ravi Kumar, CMD, BHEL said the company is targeting 30% sales growth for FY09. He sees profits growing by 11-12% in FY09.

He stated that wage costs are higher as 40% provisions are made towards Pay Commission. He said EBIDTA margins declined due to increase in inventory costs.

ref:
http://www.moneycontrol.com/india/news/results-boardroom/bhel-targets-30-sales-growthfy09/382788

Wednesday, January 28, 2009

BHEL chalks out Rs 1,000 cr expansion programme

Bharat Heavy Electricals Ltd has chalked out an ambitious Rs 1,000 crore two-year expansion programme, focusing on valve production, advanced technology products and coal research, among other things.

The programme, which is in the third phase, also envisaged expanding the welding research institute, seamless tube plant and modernisation of shop floors of the complex here, BHEL Executive Director V Ananthakrishnan said in a statement.

Preliminary works like requisite civil structures had already been completed, he said.

BHEL spent about Rs 190 crore in the first phase, which was completed a year ago. For the second phase, which will be completed by March this year, Rs 732 crore has been allotted, and for the third phase Rs 1,000 crore.

Dwelling on the capacity augmentation schemes for the national power addition programmes, he said BHEL had embarked on a major expansion plan to increase the manufacturing capacity to generate 15,000 MW in the second phase, which is under way, and 20,000 MW in the third phase.

On BHEL's in-house research and development, he said the recent inauguration of the supercritical test facility, the sixth in the world, was a shot in the arm for the country's technical advancement efforts.

Source:
http://www.hindu.com/thehindu/holnus/006200901281732.htm

Tuesday, January 20, 2009

BHEL Q3 PAT seen up 22% at Rs 944.01 cr

BHEL is to come out with Q3FY09 numbers. According to CNBC-TV18 estimates, its profit after tax, PAT is expected to go up by 22% at Rs 944.01 crore versus Rs 771.9 crore in same period of last year.

The company's net sales are seen going up by 28% at Rs 6,348.73 crore versus Rs 4,964.14 crore. EBIDTA is likely to go up 19% at Rs 1,189.75 crore from Rs 997.57 crore.

Factors to watch and developments and order book position

Extremely strong order inflows in third quarter of FY09

The bulk of its order backlog of Rs 950 billion is from government controlled entities in which ROEs are guaranteed and interest costs are passed through.

Strong Balance Sheet with a huge net cash position of Rs75bn at the end of FY08.

However expectations on execution moderate in H2FY09, H1FY09 execution was exceptionally strong due to a few slippages from FY08.

Margins could remain depressed on account of higher wage cost provisioning and benefits of lower input prices accruing with a lag.

Recent rupee appreciation could benefit due to huge amounts of imports

Rs 5.5 billion has been provided during 1HFY09 for wages , Relatively higher provisions expected for H209

Close to signing a JV with UK's Sheffield Forgemasters to manufacture forging equipment for super-critical and nuclear power plants.

Also planning a JV with Toshiba for equipment manufacturing and EPC in transmission sector.

Capacities expected to go up from 10gw to 15gw by Nov’09



source:
http://www.moneycontrol.com/india/news/result-poll/bhel-q3-pat-seen22-at-rs-94401-cr/380125

Sunday, January 18, 2009

Bhel puts nuke reactor plan on hold, awaits govt policy

Despite being in talks with several foreign companies to float a JV for manufacturing nuclear reactors, Bhel has decided to wait till the
policies on manufacturing such equipment are clearly spelt out by the government.

However, it has decided to go ahead with its proposed JV with Nuclear Power Corporation of India (NPCIL) for manufacturing the conventional portion of a nuclear power plant.

A nuclear plant has two stages — the critical part that consists of the reactor where heat is generated through nuclear reactions. While the other comprises the conventional part where water is boiled to generate steam for running a turbine to generate power.

“We have decided to wait till the policy for manufacturing reactors is clearly outlined by the government. There are certain areas that need clarification and we have decided to wait for these clarifications, although we have been in talks with a number of parties,” Bhel CMD K Ravi Kumar told ET.

“Bhel has entered into talks with French major Areva, General Electric and a few others for entering the manufacturing sector. Finalisation of the JV will take some time,” Jairam Ramesh, minister of state for power, told ET. “However, we will go ahead with the JV for making conventional parts with NPCIL. A third foreign partner will be roped in, and will be finalised by March 2009,” said Mr Kumar.

Since overseas companies are allowed to supply technology, Bhel has plans to spend Rs 1,500 crore in two years for building plants to supply components for reactors of 1,600 mw.


Source:
http://economictimes.indiatimes.com/News/Economy/Policy/Bhel_puts_nuke_reactor_plan_on_hold_awaits_govt_policy/articleshow/3998931.cms

Friday, January 16, 2009

BHEL-built solar panel part of Isro's first satellite export

Bharat Heavy Electricals Ltd has a reason to cheer as the Indian Space Research Organisation successfully launched its first satellite-export project for EADS-Astrium of Europe, equipped with solar panels build by the public-sector power-equipment manufacturer.

"BHEL has manufactured and supplied Space Grade Solar Panels to ISRO for their first satellite-export project for EADS-Astrium of Europe," a BHEL statement today said.

The satellite, equipped with the BHEL-built Solar Panels, was successfully launched by the European Ariane-5 launch vehicle from French Guyana.

Meanwhile, the company is close to finalising the joint venture partner for manufacturing nuclear forgings. BHEL's current orderbook stands at Rs 45,000 crore.

The power-equipment maker would investing Rs 10,000 crore in the current five-year plan on organic expansion, of which Rs 2,000 crore has already been spent.

The company has also received board approval for investing Rs 4,800 crore in expansion in the financial year 2009-10.

BHEL has recently won a Rs 2,100-crore order from NTPC for setting up two 500-MW units of steam generator and steam turbine generator packages at the latter's Mauda Super Thermal Power Project in Nagpur.


ref:
http://www.business-standard.com/india/news/bhel-built-solar-panel-partisros-first-satellite-export/14/54/53033/on

Tuesday, January 6, 2009

BHEL to enter nuclear area

Bharat Heavy Electricals Ltd. (BHEL) has approved a massive expansion programme to enhance its manufacturing capacity to 20,000 MW by 2012 and its foray into nuclear power equipment production such as generators, turbines and nuclear reactors along with joint venture partners.

The company has also decided to open an office at Shanghai in China by March to source castings and forgings from China and develop a working relationship with Chinese suppliers.

The approval comes close on the heels of doubts raised by sections of the Power Ministry over the ability of BHEL to fulfil its obligations in view of the massive capacity addition programme during the XI Plan.

Order book position

The company’s order book now stands at 45,000 MW..

Under the programme approved by the BHEL Board and the Ministry of Heavy Industries, BHEL would have 15,000 MW capacity in place by the end of 2009 and 20,000 MW by 2012. In addition, the transmission capacity at the Bhopal unit would increase to 30,000 MVA by March and at Jhansi to 15,000 MVA by the end of October. The expansion programme up to 15,000 MW with an investment of Rs. 4,200 crore had been approved for this purpose.


source:
http://www.hindu.com/2009/01/07/stories/2009010754271800.htm

Monday, January 5, 2009

BHEL, KPTC join hands for thermal power project

Bharat Heavy Electricals (BHEL) and Karnataka Power Transmision Corporation (KPTC) will join hands to set up a joint venture company for setting up a supercritical thermal power project in Raichur district.

The project with 2,600 MW capacity will come up on a 600-acre site at Yedlapura and Yemmaruru, for which land has been identified. The government has given go-ahead for ground preparation; BHEL and KPTC will sign an MoU soon.

The project is expected to strengthen power availability in the state, Eshwarappa said. The first unit will be operational in four years.

ref:
http://timesofindia.indiatimes.com/Bangalore/BHEL_KPTC_join_hands_for_thermal_power_project/articleshow/3939538.cms

Saturday, January 3, 2009

BHEL likely to form JV with UK firm and Toshiba

Bharat Heavy Electricals (BHEL) is close to signing an agreement with two foreign companies for joint ventures (JV) in forging and transmission sectors, reports Business Standard.

BHEL presently manufactures forging equipment for the sub-critical power plants at its Haridwar plant in Uttarakhand.

The company is also about to sign a pact with Japan`s Toshiba for equipment manufacturing and engineering, procurement and construction business in the transmission sector.

The government plans to add 78,577 mw capacities in the ongoing Eleventh Five Year Plan (that ends Mar 2012) and another 82,000 MW under the Twelfth Plan.

The transmission system that empties power from the generating stations will thus have to be enhanced manifold.

Shares of the company closed up Rs 7.1, or 0.51%, at Rs 1,408.25. The total volume of shares traded at the BSE was 394,834 (Friday).


Source:
http://www.myiris.com/newsCentre/newsPopup.php?fileR=20090103104219203&dir=2009/01/03&secID=livenews